This is even worse then XP

Next-generation operating system aims to bring more 'clarity'; formerly was code-named Longhorn.

NEW YORK (CNN/Money) - Microsoft announced Friday that it will call its next-generation operating system "Windows Vista."

The much-anticipated operating system had formerly been code-named "Longhorn."

Microsoft also unveiled the Windows Vista Web site and said the first beta test version of the system, which will be targeted at developers and IT professionals, will be available by Aug. 3. The system is scheduled to be released late next year.

Previous Windows releases have been named by year number or by a moniker -- such as Windows XP -- to describe the release itself.

But with Windows Vista, Microsoft wanted the name to focus more on the product, and how it brings clarity to users, said Greg Sullivan, group product manager at Microsoft.

"We each have our own unique view or vista of this digital world. Windows Vista is going to bring more clarity to that," he said.

Microsoft (Research) has promised that the new system will have several improvements, including better security features, more comprehensive search capabilities and a friendlier user interface.

Specific features include a new way to manage files involving the use of virtual folders, which will make storing and finding information easier, Sullivan said.

Several privacy capabilities, such as protected user accounts, have also been built into the new system, he said.

In a Microsoft video of the name announcement, the new system is described as "Clear. Confident. Connected."

Licenses for operating systems and related software still account for the majority of the Redmond, Wash.-based software